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Marketing > Product Life Cycles and New Product Development L6 > Flashcards

Product Life Cycles and New Product Development L6 Flashcards

1
Q

What does the term ‘product’ mean?

A

The tangible and intangible attributes related to physical goods and services, ideas, people, places, experiences and even a mix of these various elements

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2
Q

What are examples of completely intangible products?

A
  • Education
  • Entertainment
  • Hairdressing
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3
Q

What are examples of fairly intangible products?

A
  • Financial services
  • Healthcare
  • Theme parks
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4
Q

What are examples of fairly tangible products?

A
  • Computer hardware
  • 3D televisions
  • Fast food retailers
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5
Q

What are examples of completely tangible products?

A
  • Toiletries
  • Frozen foods
  • Fruit
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6
Q

What are the three product levels?

A

Core product
Embodied product
Augmented product

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7
Q

What is a core product?

A

The real core benefit/service. May be a functional benefit (what the product will do) or an emotional benefit (how the product or service will make people feel)

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8
Q

What is an embodied product?

A

Consists of the physical good or service plus an expected benefit. E.g features, capabilities, durability, design, packaging, promotion and brand name

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9
Q

What is the augmented product?

A

Consists of the embodied product plus all those factors that are necessary to support the purchase and any post purchase activities e.g credit, finance, training, delivery

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10
Q

What is the paradox regarding product development decisions?

A

Innovation is costly and a risky activity but risky to not innovate

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11
Q

What is the difference between innovation and invention?

A

Innovation is about change and remodelling things. Invention is about creating something totally new that hasn’t existed before.

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12
Q

What is product differentiation?

A

Act of designing a set of meaningful differences to distinguish the company’s products from competitor’s products.

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13
Q

How can firm’s differentiate?

A

Product/service attributes: quality, features, style and design

Packaging/delivery

Branding

Euthanasia

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14
Q

What does the product lifecycle consist of?

A
  • Product development
  • Introduction
  • Growth
  • Maturity
  • Decline
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15
Q

How does the Boston Matrix relate to the product lifecycle?

A

Dog is product development as it doesn’t have MS, not sure if there is potential

Question mark is introduction as potential looking good

Star is growth as there is lots of profit to sustain

Cash cow is maturity as share is declining but profit is still being reaped

Dog is a failing product - decline

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16
Q

What is the lifecycle like for a style?

A

It increases quickly then dips and increases slightly a bit later before falling again

17
Q

What is the lifecycle like for a fashion?

A

It increases gradually and falls gradually

18
Q

What is the lifecycle like for a fad?

A

It increases sharply and decreases sharply

19
Q

What are the key characteristics of a service?

A
  • Intangibility
  • Perishability - only valid then
  • Variability
  • Inseparability as cannot separate provider and receiver
  • Lack of ownership as no transfer of ownership
20
Q

What are the stages of service innovation development?

A

1) Services used as after-sales product support
2) Aftersales services used to complement and upsell core product
3) Services and products used together to differentiate an offering and solve lifecycle problems
4) Services become a fully integrated element in overall offering

21
Q

What is servitisation?

A

The provision of an integrated bundle of product/service solutions for the entire lifecycle of their customers ‘from cradle to grave’

22
Q

What are the 3 possible ways to manage a product mix?

A
  • Modify existing product
  • Delete existing product
  • Develop new product
23
Q

What does a deletion analysis consist of?

A

Monitoring performance on a continuous basis, recognising product decline, option to retain if can change something, if deletion can phase out or allow it to runout or withdraw damaging brand

24
Q

What product modification options exist?

A
  • Product: improve, embellish
  • Price: increase/decrease
  • Promotion: increase/decrease, change mix
  • Presentation: change design
  • People: train, replace
  • PH Env: enhance, change, leverage
  • Positioning: change sector or target
  • Place: increase, switch to different outlets
25
Q

What are the different product/service developments that can be made?

A

Minor product modifications: maintenance, sustaining position

Incremental modifications: moderate process change

Completely new product: breakthrough, new processes and technologies

26
Q

Why do new products fail?

A
  • NPD is too expensive
  • Product design problems
  • Unexpected delays: time to market too long
  • Idea good but market overestimated
  • Insufficient demand
  • Not as well designed as it should have been
  • Incorrectly positioned
  • Incorrectly priced
  • Competitors fight back more aggressively than expected
  • Internal organisational factors (power and politics)
  • Poor marketing
  • Ignoring/misreading poor market research findings
27
Q

What is the new product development funnel?

A

Idea generation

Idea screening

Business and market analysis

Development

Market testing

Launch

28
Q

What is missing from the NPD funnel?

A

Post launch evaluation to get feedback and enhance the next generation of the launch

29
Q

What is the product development lifecycle?

A
  • Research
  • Usability engineering
  • Prototyping
  • Development
  • Testing Q and A
  • Documentation
  • Porting
  • Training
  • Sales support
  • Deployment
  • Technical support
  • Maintenance
  • Performance engineering
30
Q

What is the process of diffusion/innovation adoption?

A

Innovators

Early adopters

Early majority

Late majority

Laggards

31
Q

What is the technology adoption lifecycle?

A

Technology enthusiasts

Visionaries

CHASM

Pragmatists

Conservatives

Skeptics

32
Q

What does new product success depend on?

A
  • Good understand of market: customers, market size, competitors, distribution etc
  • Well defined product concept: defined target market, product requirements, benefits etc
  • USP – higher quality, features, better value in use, clear focus
  • Good communication – consumer, sales force, trade, aftersales etc
33
Q

What is the case for NPD test marketing?

A
  • Lessens risk of failure
  • Enables refinement of product mix, promotion, price and packaging
  • Previews performance in marketplace
34
Q

What is the case against NPD test marketing?

A
  • Too many risks
  • Expense
  • Unnecessary is product development procedure is followed
  • Results may not be valid
  • Alerts competitors
  • May monitor and copy

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